---
title: "Analysis"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/100000000828772.md"
description: "When analyzing listed companies, investors often group financial ratios into categories. Here’s a practical framework:CategoryCommon RatiosWhat They MeasureValuationPrice-to-Earnings (P/E), Price-to-B..."
datetime: "2026-08-01T10:41:06.000Z"
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  - [zh-CN](https://longbridge.com/zh-CN/topics/100000000828772.md)
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author: "[AllMoneyBack888888](https://longbridge.com/en/profiles/2078413512531296256.md)"
generator: "portal-rs"
---

# Analysis

When analyzing listed companies, investors often group financial ratios into categories. Here’s a practical framework:

**Category**

**Common Ratios**

**What They Measure**

**Valuation**

Price-to-Earnings (P/E), Price-to-Book (P/B), Price-to-Sales (P/S), EV/EBITDA, PEG Ratio

Whether the stock is cheap or expensive

**Profitability**

Gross Margin, Operating Margin, Net Profit Margin, Return on Equity (ROE), Return on Assets (ROA), Return on Invested Capital (ROIC)

How efficiently the company generates profits

**Liquidity**

Current Ratio, Quick Ratio, Cash Ratio

Ability to meet short-term obligations

**Solvency / Leverage**

Debt-to-Equity, Debt-to-Assets, Interest Coverage Ratio, Net Debt/EBITDA

Long-term financial strength and debt burden

**Efficiency / Activity**

Asset Turnover, Inventory Turnover, Receivables Turnover, Days Sales Outstanding (DSO), Cash Conversion Cycle

How efficiently assets are used

**Cash Flow**

Free Cash Flow Yield, Operating Cash Flow Margin, Cash Flow to Debt

Cash generation quality

**Dividend**

Dividend Yield, Dividend Payout Ratio, Dividend Coverage Ratio

Income potential and sustainability

**Growth**

Revenue Growth, EPS Growth, Book Value Growth, Free Cash Flow Growth

Business expansion over time

**Market Performance**

Earnings Per Share (EPS), Beta, Market Capitalization, Enterprise Value

Market characteristics and stock behavior

**Ratios commonly used by long-term value investors**

-   P/E
-   P/B
-   EV/EBITDA
-   ROE
-   ROIC
-   Debt-to-Equity
-   Free Cash Flow Yield
-   Dividend Yield
-   Dividend Payout Ratio

**Ratios commonly used for REITs**

-   Price-to-Book (P/B)
-   Distribution Yield
-   Distribution Payout Ratio
-   Adjusted Funds From Operations (AFFO) Payout Ratio
-   Gearing Ratio
-   Interest Coverage Ratio
-   Net Asset Value (NAV) per unit
-   Occupancy Rate
-   Weighted Average Lease Expiry (WALE)

**Ratios commonly used for banks**

-   Price-to-Book (P/B)
-   Return on Equity (ROE)
-   Net Interest Margin (NIM)
-   Cost-to-Income Ratio
-   Non-Performing Loan (NPL) Ratio
-   Common Equity Tier 1 (CET1) Capital Ratio
-   Dividend Yield.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**